November 2, 2007

Germany will post a budget deficit of 0.1% of GDP

German Finance Minister Peer Steinbrueck reiterated that Germany will post a budget deficit of 0.1% of gross domestic product this year and that the economic upswing is still robust. The comments, in a prepared text of a speech to be delivered at the university in Kiel, Germany, come after Der Spiegel weekly magazine reported Monday that Germany would post a surplus of 0.1% of GDP this year.

Turning to recent financial market turbulence, Steinbrueck said there are advantages and disadvantages from a globalized financial system. That's why the German government has proposed legislation to deal with undesired effects, including a bill to boost venture capital by promoting financial investments where a lack of capital is evident as well as the risk reduction bill, which aims to prevent undesired financial investor activities by boosting transparency and legal certainty on capital markets.